UK property sales hit record highs

Official figures released this week show that property sales in the UK reached record highs in June. Analysts suggest that it may signal the very peak of the housing boom.

June saw an estimated 213,120 sales completed over the course of the month according to HM Revenue and Customs (HMRC) data - over twice the number recorded in May.

Analysts describe a “frenzied rush” as buyers scampered to complete purchases before the end of the stamp duty holiday. However, experts also expect prices to continue rising as demand still far outweighs supply.

UK property sales in June hit the highest monthly total since data first started being collected in April 2005. Sales figures for June were 108.5% higher than the previous month, and 216.1% higher than in June 2020.

One of the reasons for the huge increase in completed sales was the ending of stamp duty concessions first introduced to alleviate the effects of the pandemic last year.

In England and Northern Ireland the stamp duty holiday threshold was reduced from £500,000 to £250,000 at the end of June. Wales saw the stamp duty holiday end entirely, whilst Scotland had already had the concession withdrawn at the end of March.

Jeremy Leaf, a London-based estate agent, said: "These figures clearly illustrate the frenzied rush to the finishing line for buyers to take advantage before the stamp duty holiday drew to a close.

"However, activity has reduced since, particularly in London where the savings were greatest. Early signs are that sales will be down significantly but we have noticed nearly all of our transactions are continuing with very few renegotiations. This leads us to believe prices will not be markedly different over the next few months."

Personal finance analyst at Hargreaves Lansdown, Sarah Coles, said: "There's been a huge imbalance between buyers and sellers during the spring and early summer, which has meant panic buying, bidding wars, and the return of gazumping."

Coles says that these factors could possibly lead to people overpaying for their new homes.

"It's also easy to feel you don't have any other choice, so you end up pushing your budget and over-stretching your finances,” said Coles. “Months down the line, you could seriously regret the lifestyle compromises you've had to make.”